Avanti Communications Group Plc Trading Update (9802I)

TIDMAVN

RNS Number : 9802I

Avanti Communications Group Plc

30 November 2018

30 November 2018

Avanti Communications Group plc

Trading update for the Quarter ended 30 September 2018

Avanti Communications Group PLC (AIM: AVN) ("Avanti" or "the Group"), a leading provider of satellite data communications services in Europe, the Middle East and Africa, issues the following update for the quarter ended 30 September 2018 and post quarter to date. This represents the Company's fifth quarter ahead of the 18 month period ending 31 December 2018 pursuant to the Company's change of year end announced in May 2018.

Highlights

   --      Seven-year wholesale capacity agreement signed for $84 million 
   --      $10 million contract signed with Viasat for HYLAS 4 capacity 
   --      Master Distribution Agreement agreed with Comsat, gaining access to US Government 
   --      Revenue for the 3 months to 30 September 2018 was $10.8 million 
   --      EBITDA loss of $10.6 million 

-- Successful arbitration proceedings against the Government of Indonesia and subsequent receipt of $20.1 million

   --      Period end cash balance was $13.3 million 
   --      Period end backlog was $164.6 million 

-- Post period $34.5 million draw-down through extension to the existing Super-Senior Facility

Seven-Year Wholesale Capacity Agreement

In September 2018, Avanti signed a seven-year wholesale capacity lease agreement, worth US$ 84 million over the period, with a major international satellite service provider. The Company will receive US$ 12 million per annum in quarterly instalments for the duration of the agreement once commenced. The agreement is expected to commence in Q3 of the Company's next financial year ending 31 December 2019. The capacity lease agreement for its HYLAS-fleet of satellites will increase significantly the Company's usage and fill-rates.

$10 million Contract with ViaSat

In June 2018, Avanti signed our first HYLAS 4 contract for steerable capacity with ViaSat. The contract is worth $10 million over two years.

Master Distribution Agreement agreed with Comsat

Avanti is establishing a strategic presence in Washington, D.C. which will be purely focused on selling our Mil-Ka capacity to the US Government and related agencies.

We have concluded a unique Master Distribution Agreement with Comsat Inc, USA. They are a fully approved, long term satellite communications supplier to the US Department of Defense, US Government and other related agencies. The seven-year contract enables Avanti to immediately access these key growth markets to offer its HTS network.

Successful Arbitration - Government of Indonesia

In July 2018, we were successful with our arbitration proceedings against the Government of Indonesia. In early August 2018, we received $20.1 million in full settlement.

$34.5m Super-Senior Facility Draw-Down

The Company has signed an agreement to extend the existing Super Senior Facility from $132.5 million ($118 million drawn) to $152.5 million and the Group is drawing down the additional $34.5 million of new funding to support the business going forward.

Outlook

The current activity levels and pipeline gives us confidence that we will see strong growth in bandwidth revenues in the final quarter of 2018. Furthermore, the recently signed contracts underpin significant growth in core bandwidth revenue throughout 2019.

This announcement contains inside information.

For further information, please contact:

 
Avanti Communications      Nigel Fox, Chris McLaughlin 
                            Tel: [phone] 
Montfort                   Nick Miles, James Olley 
                            Tel: [phone] 
Cenkos Securities (Nomad)  Max Hartley 
                            Tel: [phone] 
Newgate Communications     Ralph Anderson 
                            [phone] 
 
 

About Avanti

Avanti is focused on Government and International Operations in need of secure broadband connectivity across Europe, Middle East and Africa.

Avanti's HYLAS fleet offers up to 50 Ghz of Ka and Mil-Ka capacity over an expanding market.

Avanti delivers the level of quality and flexibility that the most demanding telecoms customers in the world seek. Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and KA-band spectrum in perpetuity that covers an end market of over 1.7bn people. The Group has invested $1.2bn in a network that incorporates satellites, ground stations, datacentres and a fibre ring.

Avanti has a unique Cloud-based customer interface that is protected by patented technology. Avanti Communications is listed in London on AIM (AVN: LSE). www.avantiplc.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

TSTFKCDQFBDDADB

(END) Dow Jones Newswires

November 30, 2018 02:00 ET (07:00 GMT)